Source : Hollywood Reporter

TORONTO -- The Canadian TV industry breathed a sigh of relief Tuesday as the federal government followed through on a promise to restore financing to the Canadian Television Fund, the main source of key government subsidies for domestic film and TV production.

Federal finance minister Ralph Goodale, delivering the Canadian government's budget in Ottawa, pegged the annual contribution to the CTF at CAN$100 million ($75.1 million) for 2005-06, up from CAN$62.2 million ($46.7 million), which was allocated for the CTF in 2004-05 following a deep budget chop last year.

"Producers are very happy about the budget announcement. It's a real vote of confidence for the CTF," said Guy Mayson, president and CEO of the Canadian Film and Television Production Assn., which represents major independent producers. "The additional dollars will help address the financing problems inherent in making Canadian-made TV."

Canadian TV production and broadcast sectors lobbied the federal government in recent months for long-term funding to restore stability to a domestic TV sector rocked by falling government subsidies and shrinking international markets for their product.

"(Prime Minister Paul Martin) has thrown our industry a lifeline by restoring funding to the CTF," said Stephen Waddell, national executive director of the Alliance of Canadian Cinema, Television and Radio Artists, which represents 21,000 domestic performers.

The federal government last year threw the Canadian TV industry into crisis by cutting its contribution to the CTF.

To ease the resulting funding crunch for the 2003-04 Canadian TV season, the government advanced CAN$12.5 million ($9.4 million) from this year's contribution, leaving a CAN$37.5 million ($28.2 million) shortfall for the coming year.

The restored funding for the CTF, a key source of financing for independent producers looking to get their shows on primetime schedules here, means that Canadian broadcasters are more assured of financing for new and returning TV programs proposed for their 2004-05 seasons.

Had the government not restored funding to the CTF, independent TV producers would have been left scrambling to find alternative financing to get their fall projects on air.

There also was good news Tuesday for the Canadian Broadcasting Corp. The federal government, in separate ministerial documents, said it will give the public broadcaster CAN$927.4 million ($696.3 million) in 2004-05, with the rest of the radio and TV network's operating budget to come mainly from TV advertising revenue.

The CBC last year received CAN$860.1 million. The increased appropriation for 2004-05 stems from a one-time contribution of CAN$60 million ($45 million); another CAN$15.3 million ($11.5 million) in funding for Radio Canada International, the CBC's foreign radio service; and an appropriation of CAN$1.4 million ($1.05 million) in salary funding.

Government estimates project about CAN$540.7 million ($405.9 million) in revenue for the CBC over and above Ottawa's annual appropriation. Of that total, about CAN$277.8 million ($208.5 million) is projected to come from advertising revenue generated by CBC's English- and French-language main TV networks.

CBC estimates indicated that an additional CAN$262.9 million ($197.4 million) in revenue is due from airing the Athens Olympics; CBC Newsworld and RDI, the CBC's specialty news channels; Galaxie, a digital sound service; and other sources, including rents, leases, merchandising, international sales and host broadcasting.

© Hollywood Reporter